DS: European Communities — Measures Affecting Differential and Favourable Treatment of Coffee

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.


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Complaint by Brazil.

On 7 December 1998, Brazil requested consultations with the EC in respect of the special preferential treatment under the EC’s Generalised System of Preferences (GSP). Brazil asserted that the EC GSP scheme is applicable to products originating in the Andean Group of countries and the Central American Common Market countries, that are conducting programmes to combat drug production and trafficking. In the case of soluble coffee, this special preferential treatment, contained in Council Regulation (EC) No. 1256/96, amounts to duty free access into the EC market. Brazil stated that it is aware that there is a proposed Council Regulation which would unify all EC laws and regulations concerning the operation of the GSP scheme for both agricultural and industrial products. Brazil contended that this special treatment adversely affects the importation into the EC of soluble coffee originating in Brazil. Brazil alleged that this special treatment is inconsistent with the Enabling Clause, as well as with Article I of GATT 1994. Brazil further alleges that this special treatment nullifies or impairs benefits accruing to Brazil directly or indirectly under the cited provisions.


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